Qatari banking sector saw a growth in its total assets, overall deposits and loans in December, QNB Financial Services (QNBFS) said in a report.
Total assets increased by 3.3% MoM (up 4.2% in 2022) in December 2022 to reach QR1.905tn, it said.
Overall loans increased by 2.7% to reach QR1.26tn mainly due to both public and private sector.
The government segment increased by 9.5% and can be attributed to flexibility in using short-term financing even as oil and gas prices remained elevated and added to government revenues.
Government institutions also increased by 5% and showed “positive signs” on government related corporate entities business activities picking up.
On the private sector front, real estate and services continued to increase in December 2022 to likely meet the needs mainly arising from the FIFA World Cup Qatar 2022, while loans to the general trade segment likely increased from both higher trade activities related to energy related commodity exports and imports related to the World Cup.
Overall deposits, QNBFS said, increased by 4.3% in December to reach QR999.1bn, mainly due to government deposits surging by 31.3% and can be attributed to higher oil and gas prices and increased government revenues.
As deposits gained by 4.3% in December, the Loans to Deposits ratio (LDR) moved down to 125.7% in December as opposed to 127.6% in November 2022.
“Overall there is a better liquidity in the banking system and it is likely to improve since the shift from government commitments for FIFA World Cup Qatar 2022 will refocus towards diversifying the economy and long-term sustainability, while capitalising on the successful hosting of the best ever edition of the FIFA World Cup,” an analyst told Gulf Times Wednesday.
Domestic private sector loans increased by 2.1% MoM (+7.4% in 2022) in December 2022, QNBFS noted.
The real estate, services and the general trade segments were for the second consecutive month the main contributors toward the private sector loan growth.
The real estate segment (contributes 23% to private sector loans) shot up by 6% MoM (+15.2% in 2022) in December 2022.
Services (contributes 29% to private sector loans) moved up by 2.6% MoM (+11.3% in 2022).
General trade (contributes 21% to private sector loans) went up by 2.7% MoM (3.5% in 2022).
However, consumption and others (contribute 20% to private sector loans) declined by 2.4% MoM (+2.6% in 2022) during December 2022.
Outside Qatar loans dipped by 7.1% MoM (-16.7% in 2022) during the month of December 2022, the report noted.
Public sector deposits increased substantially by 9.5% MoM (+20.7% in 2022) for the month of December 2022.
Looking at segment details, the government segment (represents 30% of public sector deposits) shot up by 31.3% MoM (+4.9% in 2022), while the government institutions’ segment (represents 56% of public sector deposits) increased by 2.0% MoM (+28.4% in 2022) and the semi-government institutions’ segment moved up by 2.9% MoM (+31.8% in 2022).
Private sector deposits went up by 1.1% MoM (+13.2% in 2022) in December 2022.
On the private sector front, the consumer segment increased by 2.4% MoM (+4.4% in 2022). However, the companies and institutions’ segment declined marginally by 0.1% MoM (+23.7% in 2022) during December 2022.
Non-resident deposits slightly reversed its sharp fall for the year during the month of December 2022 and pushed up by 2.9% MoM. However, for the year 2022 non-resident deposits fell by 31.4%, QNBFS said.
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